SECOND TAKE: FT’S LEX
THE LEX COLUMN: Electrification hammers German car workers
A jobs massacre looms as Germany loses its grip in a car industry value chain undergoing a revolution
Thunk. Monday brought a shock warning that hundreds of thousands of Germans could lose jobs in the car industry over the next decade. On Tuesday another door slammed with news that more than 2,000 jobs are set to go at Opel. The group’s decision to cut staff in Germany comes soon after owner PSA agreed to a merger with Fiat Chrysler.
The real driver of the industry’s shrinking payroll is not consolidation but electrification. The country is set to lose its grip on the most lucrative links in the car industry value chain.